Functions of Materials Management
The process of materials management can be explained by three overlapping functions:
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Production Control
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Inventory Control
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Materials Handling
The relationship of these three functions can be better explained by studying the flow of materials through the entire firm; starting from the selection of a supplier to the point where the products reach the customers.
Material flow is a stepwise process that describes the involvement of different departments through which materials are processed and made available for the end customers. Figure 12.1 represents the material flow process of a typical manufacturing firm. The flow process is similar in service firms as service firms also deal with materials. For instance, automobile service stations need to maintain materials in the form of accessories, spare parts, lubricant oil, etc.
Figure: The Materials Flow Process
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